Analyst Javon Marks has updated his outlook for Dogecoin, predicting a potential 600% surge to $2.28 based on historical price patterns.
Dogecoin experienced a major price decline on Monday, dropping below the $0.31 level as tech stocks tumbled. However, the meme coin regained ground on Tuesday, rising back to $0.3345. This recovery marked a 5.85% increase in 24 hours, though the cryptocurrency remained down by 2.33% over the past week.
Amid this fluctuation, analyst Javon Marks highlighted Dogecoin’s historical price trends, pointing to its recurring market cycles. His analysis outlined three distinct phases, each involving accumulation, a breakout, a surge in price, and a subsequent correction.
Based on these patterns, Marks suggested that Dogecoin remains on track for another bullish move.
Dogecoin Road to $2.28
According to Marks, historical price movements indicate the potential for a rally exceeding 600%, pushing Dogecoin to approximately $2.28.
Marks previously noted that Dogecoin’s 1.618 Fibonacci extension level aligns with this target. His past projection on January 17 suggested that a 432% increase could be the minimum gain for the crypto if past trends repeat. This increase could have pushed Dogecoin to $2.28758.
Meanwhile, another analyst, Balo, compared Dogecoin’s current position to its 2017 and 2021 bull runs. He observed that during the last two cycles, the 20-week exponential moving average (EMA) was a critical support level throughout the bull market.
Additionally, he pointed out that Dogecoin never dipped below the 0.618 Fibonacci retracement level after surpassing it. Currently, the cryptocurrency is positioned at the 20-week EMA and the 0.618 Fibonacci level, suggesting strong support for higher levels.
Whale Accumulation Surges Over 90 Days
Elsewhere, recent data tracking large holders’ inflows into Dogecoin wallets shows a significant increase in whale accumulation. Over the past seven days, inflows rose by 5.33%, marking a moderate weekly uptick.
However, the past 30 days saw a much larger surge of 323.86%, reflecting growing interest from high-net-worth investors. More notably, inflows over the last 90 days skyrocketed by 3,722.46%.
When whales accumulate, the supply in circulation decreases, often leading to upward price pressure. This accumulation trend suggests that major investors continue to build their positions in Dogecoin despite recent market volatility.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
